NEW YORK ( TheStreet) -- We began 2013 with positive fundamentals for the bank stocks in the PHLX KBW Banking Index (^BKX). Among the 24 components, four were rated strong buy including two of the "too big to fail" money center banks Bank of America (BAC - Get Report) and Citigroup (C - Get Report). We showed 14 buy rated names including the other two "too big to fail" banks, JP Morgan (JPM - Get Report) and Wells Fargo (WFC - Get Report). There were only six rated hold.In my last post covering these banks on May 2, Bull Market Will End Without Big-Bank Leadership the only buy rated name was Citigroup. Even so, there was enough technical momentum to power the banking index to a new multi-year high at $62.92 on May 30.
The finance sector is 16.8% overvalued with the banking index up 18.9% leading the S&P 500, which is up 14.4%. The overall market remains under a ValuEngine valuation warning with 69.2% of all stocks overvalued.